Muraki Company has one product and sold 10,000 units in the first quarter of 2016.The company expects to sell 15% more units in the first quarter of 2013,at a price of $50 per unit.Based on this information,what is the amount of sales revenue that will appear in the budgeted income statement for the first quarter of 2013?
A)$500,000
B)$550,000
C)$575,000
D)$600,000
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

To calculate the sales revenue for the first quarter of 2013, we need to know the number of units that are expected to be sold and the price per unit. We are given that 15% more units are expected to be sold, and since the company sold 10,000 units in the first quarter of 2016, it is expected to sell 10,000 x 1.15 = 11,500 units in the first quarter of 2013.

The price per unit is given as $50. Therefore, the sales revenue that will appear in the budgeted income statement for the first quarter of 2013 is:

Sales revenue = Units sold x Price per unit
Sales revenue = 11,500 x $50
Sales revenue = $575,000

Therefore, the correct answer is choice letter C, $575,000.

Muraki Company Has One Product and Sold 10,000 Units in the First